HyperLiquid Upgrades to AQAv2 Mechanism: USDC Balances in Contract and Treasury Addresses Maintain Dynamic 1:9 Ratio

Odaily Planet Daily News: HyperLiquid has announced an upgrade to the AQAv2 mechanism. The system will use on-chain automated trading to maintain a dynamic 1:9 balance of USDC between two core addresses in each HyperEVM block, corresponding to the contract execution layer and the treasury reserve layer, respectively.

According to the mechanism design, this ratio is used for functional stratification between "high-frequency trading and liquidation liquidity" and "long-term reserves and yield pools," aiming to enhance system stability and isolate trading risks.

On the technical side, the balancing process is executed automatically by the system without manual intervention. Circle is responsible for the technical deployment, while Coinbase undertakes the treasury deployment and management.

Regarding the yield mechanism, AQAv2 stipulates that stablecoin issuers must distribute approximately 90% of their cost-adjusted reserve earnings generated within the Hyperliquid ecosystem to the protocol. Settlement occurs on a 30-day cumulative cycle, and the earnings will be automatically transferred to the Assistance Fund on the 8th day after the cycle ends.

Additionally, the mechanism includes a transition period arrangement:

1. Start of yield accrual: August 26;

2. First yield payment: October 3.

The market believes this design marks the evolution of stablecoins from traditional custody structures toward an on-chain infrastructure model characterized by "protocolized capital stratification + automated yield distribution."